New Directives from the Central Bank to Commercial Banks
The Central Bank of Sudan has instructed commercial banks and financial institutions to revalue their fixed assets in order to address the impact of the war, enhance transparency, and advance the reform and restructuring of the banking sector.
In a circular, the Bank required institutions to engage independent, accredited, and competent consulting firms committed to neutrality in conducting the valuations.
The directives further emphasized strict adherence to approved International Financial Reporting Standards (IFRS) and the regulations of the Central Bank of Sudan, ensuring the integrity and reliability of financial statements, as well as transparency and full disclosure in their preparation. The guidance also underscored the need to clearly reflect any impact on shareholders’ equity and to account for any resulting discrepancies.
Banks and financial institutions have been instructed to submit a detailed report to the Central Bank outlining the valuation methodology, implementing entities, findings, and financial implications within a timeframe to be specified by the Bank.
The circular affirmed the Central Bank’s right to review or request a reassessment whenever deemed necessary, or to take any measures in accordance with applicable laws and regulations.
The directives came into effect as of February 17 of this year.
